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Sample text

As rights are variable and hard to delineate, claiming rights is subject to some uncertainty. Hence specialists enter the market system either to reduce uncertainty, such as auditors, or to provide compensation for loss resulting from failure to secure or protect a right, such as an insurer. As these are valued services, they are priced in the market. Generally, because measurement and enforcement costs are rarely negligible, capture is almost always possible. This means that some individuals without clearly defined rights may exercise claims.

The first influence to acknowledge is its ability to tax in order to generate revenues to fund its operations and priorities. Tax regimes, as impositions on its citizens, enable the state to influence the behavior of the participants in the economy it manages such that citizens would reduce their dependence on those activities associated with high taxes and gravitate to those activities with low or no taxes. The toll at the George Washington Bridge is effectively a use tax imposed on users by the Port Authority of New York and New Jersey.

A simple and common example of this is the case of payment with a credit card. Imagine that a driver at the George Washington Bridge tollbooth during the rush hour commute uses E-ZPass, a service that the Port Authority of New York and New Jersey encourages users of the bridge to adopt. The E-ZPass user maintains a credit card account, such as a Visa account. 75, which is deducted from the Visa account on record for the user. 75 flow? Payment is made in advance by the user by creating a deposit account at a bank and mediated by Visa.

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